🌳 U.S. Inflation Rate Drops for First Time in 4 Years; Compound Finance Faces Potential Major Security Breach

Macro & TradFi

US inflation dropped (https://www.bloomberg.com/news/articles/2024-07-11/us-inflation-broadly-cools-bolstering-case-for-fed-rate-cut?srnd=homepage-asia) by 0.1% in June, the first monthly decrease over four years, bringing the annual rate to 3%, the lowest in more than three years. The core consumer price index, excluding food and energy, showed the smallest increase since August 2021, rising by only 0.1% from May. This broad cooling, driven primarily by a decline in housing costs and a 3.8% decline in gasoline prices, strengthens the case for the Federal Reserve to cut interest rates. Treasuries rallied and traders are now nearly certain of rate cuts in September and December, with November cuts also likely. Real average hourly earnings increased by 0.4% in June, contributing to the positive economic outlook. This development offers encouraging news for President Biden amid political pressures, highlighting significant progress in controlling inflation and boosting the likelihood of the Fed reducing rates.

In other news, President Joe Biden asserted his commitment to the 2024 presidential election (https://www.cnbc.com/2024/07/12/biden-wont-drop-out-unless-polls-say-theres-no-way-you-can-win.html), stating he would only reconsider his candidacy if polling data unequivocally indicated he couldn't win. This declaration came during a news conference amidst increasing calls from Congressional Democrats for him to withdraw, citing concerns over his debate performance and mental acuity. Biden dismissed these concerns, emphasizing his strong support base and confidence in his campaign. However, notable Democrats, including Rep. Jim Himes, have urged him to step aside, arguing for a stronger candidate to challenge former President Donald Trump. This internal party tension highlights the high stakes and strategic calculations leading to the election.

Lastly, at Thursday’s close, the Nasdaq ended sharply lower, dropping 1.95%, while the S&P 500 fell 0.88% amid a rotation out of Big Tech stocks like Nvidia, Apple, and Tesla. This shift came after softer-than-expected inflation data led to increased bets on a Federal Reserve rate cut in September. The Dow, however, edged up 0.08%. Small-cap stocks rallied, with the Russell 2000 jumping 3.6%, as investors anticipated improved conditions from potential rate cuts. Despite signs of easing inflation, Wall Street's most valuable companies saw significant declines, with Tesla tumbling 8.4% and Apple falling 2.3%. Investors will be looking out for the Q2 earnings season, which will kick off with major US banks today, with JPMorgan, Citigroup, and Wells Fargo set to report.

DeFi & CeFi

   •   Compound Finance site potentially breached

   •   Coinbase’s attempt to subpoena SEC chair Gary Gensler criticized by judge

   •   SEC allows certain firms to skirt controversial crypto accounting bulletin

   •   Celer Network thwarts attempted DNS attack that allegedly puts 128 Web3 projects at risk

   •   Crypto miners stole $723M of electricity in Malaysia since 2018

   •   US lawmaker asks Congress to treat Binance exec in Nigeria as a ‘hostage’

   •   Portal introduces ‘PortalPay’ interoperability for blockchain gaming

🌳 U.S. Inflation Rate Drops for First Time in 4 Years; Compound Finance Faces Potential Major Security Breach

Macro & TradFi

US inflation dropped (https://www.bloomberg.com/news/articles/2024-07-11/us-inflation-broadly-cools-bolstering-case-for-fed-rate-cut?srnd=homepage-asia) by 0.1% in June, the first monthly decrease over four years, bringing the annual rate to 3%, the lowest in more than three years. The core consumer price index, excluding food and energy, showed the smallest increase since August 2021, rising by only 0.1% from May. This broad cooling, driven primarily by a decline in housing costs and a 3.8% decline in gasoline prices, strengthens the case for the Federal Reserve to cut interest rates. Treasuries rallied and traders are now nearly certain of rate cuts in September and December, with November cuts also likely. Real average hourly earnings increased by 0.4% in June, contributing to the positive economic outlook. This development offers encouraging news for President Biden amid political pressures, highlighting significant progress in controlling inflation and boosting the likelihood of the Fed reducing rates.

In other news, President Joe Biden asserted his commitment to the 2024 presidential election (https://www.cnbc.com/2024/07/12/biden-wont-drop-out-unless-polls-say-theres-no-way-you-can-win.html), stating he would only reconsider his candidacy if polling data unequivocally indicated he couldn't win. This declaration came during a news conference amidst increasing calls from Congressional Democrats for him to withdraw, citing concerns over his debate performance and mental acuity. Biden dismissed these concerns, emphasizing his strong support base and confidence in his campaign. However, notable Democrats, including Rep. Jim Himes, have urged him to step aside, arguing for a stronger candidate to challenge former President Donald Trump. This internal party tension highlights the high stakes and strategic calculations leading to the election.

Lastly, at Thursday’s close, the Nasdaq ended sharply lower, dropping 1.95%, while the S&P 500 fell 0.88% amid a rotation out of Big Tech stocks like Nvidia, Apple, and Tesla. This shift came after softer-than-expected inflation data led to increased bets on a Federal Reserve rate cut in September. The Dow, however, edged up 0.08%. Small-cap stocks rallied, with the Russell 2000 jumping 3.6%, as investors anticipated improved conditions from potential rate cuts. Despite signs of easing inflation, Wall Street's most valuable companies saw significant declines, with Tesla tumbling 8.4% and Apple falling 2.3%. Investors will be looking out for the Q2 earnings season, which will kick off with major US banks today, with JPMorgan, Citigroup, and Wells Fargo set to report.

DeFi & CeFi

   •   Compound Finance site potentially breached

   •   Coinbase’s attempt to subpoena SEC chair Gary Gensler criticized by judge

   •   SEC allows certain firms to skirt controversial crypto accounting bulletin

   •   Celer Network thwarts attempted DNS attack that allegedly puts 128 Web3 projects at risk

   •   Crypto miners stole $723M of electricity in Malaysia since 2018

   •   US lawmaker asks Congress to treat Binance exec in Nigeria as a ‘hostage’

   •   Portal introduces ‘PortalPay’ interoperability for blockchain gaming